Equity markets held their ground on Wednesday following a round of mixed earnings reports. News from companies like Netflix, Abbott Laboratories, and big banks left the market wanting more. While many are reporting better than expected, the results are offset by uncertainty and have the market in a wait-and-see mode. More reports are due on Thursday that could tip the balance in favor of bulls or bears.

The S&P 500 remains below resistance at critical levels. If the market can not get above 4,150 and stay there, it will risk another significant decline. The true risk is inflation and the Fed, which was highlighted in the Beige Book report. According to the Fed, activity is down in most regions, although inflation remains high and above target. The takeaway is that activity is declining, and the FOMC can be counted on to keep interest rates high until activity slows enough to tame inflation.